Greggs Sales Jump 7.2% as Iced Matcha and Chicken Rolls Drive 2026

Greggs sales jumped 7.2% in the first half of the year, driven by iced matcha lattes and chicken rolls that became heatwave hits. The UK's largest fast-food chain reported total sales of £1.1bn, up from the same period last year, as it adapts to hotter summers with a refreshed menu. This growth underscores how the bakery is evolving beyond traditional pastries to capture seasonal demand.

Heatwave Menu Strategy Boosts Greggs Performance

During the string of summer heatwaves, Greggs introduced and promoted iced matcha lattes, expanded salads, and added new chicken rolls. These items resonated with customers seeking lighter, refreshing options. The company's ability to pivot its menu quickly helped offset the typical summer slump seen in previous years when hot weather reduced sales of steak bakes and vegan sausage rolls.

Store Expansion and Sales Breakdown

Greggs opened 34 new stores on a net basis, bringing the total to 2,773 by the end of June. New locations are performing well due to a disciplined focus on high-quality sites. Existing store sales rose 2.1% year-over-year, supported by price increases on key items at the start of 2026. The company's pre-tax profit climbed nearly 20% to £76m, thanks to cost control and growth in its bake-at-home range sold through Tesco and Iceland.

Cost Management and Inflation Outlook

CEO Roisin Currie confirmed that Greggs does not expect further price hikes this year, as cost inflation forecast dropped from 3% to 2%. The company hedged 90% of its energy costs for 2026 and half for 2027, protecting against oil price surges. Commodity costs for cocoa and coffee have also eased, providing margin relief.

Bake-at-Home Range Expansion

The bake-at-home frozen treats line, launched in Tesco earlier this year, has been a key growth driver. Greggs expanded the range in Iceland supermarkets, tapping into the growing demand for convenient, at-home bakery options. This diversification reduces reliance on in-store sales and supports year-round revenue.

Key Takeaways from Greggs' H1 Results

• Heatwave-friendly menu items like iced matcha lattes and chicken rolls significantly boosted sales.
• Store expansion remains a core growth strategy, with 34 net new openings.
• Profit growth of 20% driven by cost control and new product categories.
• Inflation forecast lowered to 2%, reducing pressure on consumer prices.
• Bake-at-home range provides a new revenue stream beyond traditional bakery counters.

Future Outlook and Market Position

Greggs is well-positioned to continue its growth trajectory, with a strong pipeline of new stores and innovative menu development. The company's proactive approach to climate adaptation—offering cold drinks and lighter meals—sets it apart from competitors. As the UK experiences more frequent heatwaves, Greggs' flexibility will be crucial.

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